Its sounds like you are trying to increase your profits - hope this helps.
Here are 4 marketing considerations (the 4 Ps) to help Increase Revenues:
1. Pricing Options: Pricing is difficult because everyone values your
valet services differently. You want your prices to best match your
customers needs, so you can extract the most value from them. To
determine your you best pricing options, determine how many people
will park in your lot if it were free (total demand for your service).
Then determine what's the most someone will pay to valet park. (this
is highest price). Somewhere in between - you will find the optimal
price that returns the most revenue. The better you know who your
customers are, why they park at your lot, how long they stay and how
much they value your service, the better you can set a pricing
strategy that fits their needs = maximum revenue potential. This may
lead to significant changes in your pricing strategies - for example
you may run a private valet, where members pay a monthly fee and a per
visit fee - non-members may also park for a premium per visit price.
Suggestion: learn more about your customers and what they need. then
price accordingly.
2.Product: You may offer premium services - car wash, detailing,
interior scents, maybe advertise for local businesses when patrons
leave with a flyer or coupon.
3.Promotion: Build the reputation of your valet service through in car
promotions, business relationships, signage - get people aware of your
business and get them in the lot. They are more likely to patronize a
business they recognize.
4. Place: Franchise, expand to other locations be number 1 in your market.
Reduce expenses: Which expenses aren't making you money or building
your business - be able to justify every $ going out. Hire
appropriately for busy and not so busy times - improve your business
agreements. You may want to negotiate lower fixed expenses with your
landlord, but offer bigger payouts if you have a good week or month
-so he is also incentivized by your success. Becareful you don't cut
expenses so that workers stop showing up or the landlord finds
somebody else to contract out to. Cater to your customers with a
service that reflects your prices and their expectations.
It's an exciting challenge running a small business - good luck. |
